Investors Should Not Pay More Than A 15 P/E Ratio When Buying A Stock

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In this video, I will explain the concept of a P/E ratio as a valuation reference using FAST Graphs for evaluating stock prices. I will demonstrate how the P/E ratio can help determine if a stock is trading at a fair valuation or not, and whether it is a good investment. I will provide examples and show how the P/E ratio can impact the rate of return. Understanding the P/E ratio can help you make informed investment decisions.

In Chapter 14 of the Intelligent Investor, the father of value investing, Ben Graham, said never pay more than 15 times earnings to buy a stock. In this video, I’m going to show you why that’s such sage advice.

FAST Graphs Analyze Out Loud Video – Amdocs Ltd (DOX), Principal Financial Group (PFG), Target Corp (TGT), Ameriprise Financial Inc (AMP), Meta Platforms (META), Ecolab Inc (ECL), Automatic Data Processing Inc (ADP), Johnson & Johnson (JNJ)

Video Length: 00:22:58


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Disclosure: Long DOX, PFG, TGT, AMP, JNJ

Disclaimer: The opinions in this article are for informational and educational purposes only and should not be construed as a recommendation to buy or ...

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